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Time to Buy or Refinance?; Investment Fraud Case; Parting Words From President Bush; Interview With Ben Affleck; Stocking the Cabinet; Treasure Trove; Anti-Social Networking; Buying Green; The Good Thief
Aired December 17, 2008 - 12:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DON LEMON, CNN ANCHOR: Hello everyone. I'm Don Lemon in the CNN NEWSROOM. Tony Harris is off this week.
Here are your headlines from CNN this Wednesday, the 17th day of December.
Mortgages are expected to get cheaper after the Federal Reserve's latest gambit again against recession. How much cheaper? Is it time to buy or is it time to refi?
Winter weather turns a Kansas turnpike into a demolition derby. The storm part of a triple punch slamming the country coast to coast, and it's not even winter yet.
First up, a developing story. Just last hour, OPEC announced plans to make the deepest cuts ever in oil production to boost sagging prices. The cartel says it will cut production by 2.2 million barrels a day as of January 1st.
Now, that's on top of the two million barrels its already cut in recent months. OPEC says demand has fallen off sharply this year because of the worsening global economy. So what does this mean for the low gas prices we've been enjoying?
Well, CNNMoney.com's Poppy Harlow is coming up in just a few minutes to talk how the markets may react from here on out.
Worried your bank could be the next to bite the dust? Well, Treasury Secretary Henry Paulson says that is unlikely. That's what he says.
He doesn't expect any more major financial institutions to fail durin during the current credit crisis. In an interview with CNBC, Paulson said he believes the actions by government will allow all the important institutions to remain viable. Paulson says a top priority for his remaining weeks in office is making sure the transition to the new administration goes smoothly.
Now may be a great time to refinance. Mortgage rates are dropping around the country, and some analysts say they may keep falling after the Federal Reserve's move yesterday, slashing its target short-term interest rates to nearly zero.
Let's go Christine Romans in New York with more on the benefits to you.
Christine, hello to you. And I want to know, does the Fed's move yesterday mean we're going to see big drops in mortgage rates to come?
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: We've already seen historically low mortgage rates, quite frankly. And they've been low and getting lower. And a lot of analysts, Don, are saying that they expect mortgage rates to continue to fall into next year.
Why? Well, the Fed has been cutting interest rates now since September of 2007, cutting them by an awful lot, making it cheaper and cheaper to borrow money. Here are the advantages of those rate cuts.
When the Fed cuts interest rates, it means that you're adjustable rate mortgage, that rate can go down. Credit card loans can go down. Home equity lines of credit and business loans. So it's good right now, today, tomorrow, and the day after, for people whose adjustable rate mortgages are tied to these rates.
Now, here's what Greg McBride, the senior financial analyst for bankrate.com, told you just about an hour ago that I think is very important for people to pay attention to.
(BEGIN VIDEO CLIP)
GREG MCBRIDE, SR. FINANCIAL ANALYST, BANKRATE.COM: It's an attractive time to refinance into a fixed rate if you can. And for homebuyers, rates are going stay low. So put yourself in the best financial position before you take the plunge into homeownership. Pay down debt, boost your savings, make sure your credit score is as high as it can be.
(END VIDEO CLIP)
ROMANS: You need to be in good position. You need to be taking care of all of those personal finance issues here. When we talk about lower rates, these are something that the people who are solvent and who are in a good financial position can take advantage of.
Mortgage rates right now, about 5.5 percent, just a little over 5.5 percent. That's down even from last week, when they were 5.7 percent.
So the good news is lower mortgage rates, both by the Fed lowering interest rates, and also talking about buying up treasury securities that will drive down those mortgage rates. But the bad news here -- you know, you can't talk about any good news here without talking about the bad news, Don, and that is the Fed wouldn't take these moves if we didn't have a very weak economy that was in danger of getting weaker.
And if you are a saver, somebody who has been saving your money because you're afraid to putting it someplace else, if you're a saver, or you're somebody on a fixed income, you're not going to get a lot of return for those savings. And so that is another kind of a bad news part of this story.
LEMON: And if you're going to refinance or even buy, I mean, zero, you don't get lower than that. So probably shouldn't put it off. Right, Christine? ROMANS: That's right.
LEMON: All right. Christine Romans, appreciate it. Thank you very much for that.
Meantime, we have some new developments in the Wall Street investment fraud case. A bail hearing for Bernard Madoff has been canceled for today, meaning he will remain free for the time being. Meantime, SEC Chairman Christopher Cox is blaming his agency for reportedly ignoring years of warnings about a New York money manager.
CNN's Joe Johns takes a look at the accused, the allegations, and the government's missteps.
(BEGIN VIDEOTAPE)
JOE JOHNS, CNN SENIOR CORRESPONDENT (voice-over): He was a Wall Street genius and pioneer who once proudly proclaimed that there was no way to cheat on the Street.
BERNARD MADOFF, DEFENDANT: By and large, in today's regulatory environment, it's virtually impossible to violate rules. And this is something that the public really doesn't understand.
JOHNS: But now Madoff himself is accused of breaking the rules, big- time, and the government never caught him, until, authorities say, he admitted his role in an alleged fraud he estimated at an astounding $50 billion.
LINDA THOMSEN, DIVISION OF ENFORCEMENT DIRECTOR, SECURITIES AND EXCHANGE COMMISSION: (AUDIO GAP) justice.
JOHNS: But, tonight, SEC Chairman Christopher Cox says his agency appears to have screwed up, repeatedly, and in a big way, saying that "credible and specific allegations regarding Mr. Madoff's financial wrongdoing, going back to at least 1999," that he's gravely concerned by multiple failures of the agency, and that he's launching an internal investigation.
So, who were the whistle-blowers? Securities executive Frank Casey, for one. Back in 2005, he and a colleague, Harry Markopolos, started looking at Madoff's gravity-defying investment returns, and figured, something was up.
FRANK CASEY, FORTUNE: And Harry said, "Frank, you know that this can't be right. It's got to be a fraud."
JOHNS: Casey says Markopolos even took it to the next level, firing off letter after letter to the SEC, all but predicting how the Madoff story would end.
CASEY: This is a Ponzi scheme, I mean, in giant letters, 36 type, instead of 12 type. This is a Ponzi scheme. And he laid out 25 -- 28, if I can recall -- red-flag areas that they need to investigate.
JOHNS: But Casey isn't congratulating the SEC for finally figuring things out, because they got there too late. After all, billions of dollars apparently vanished through the doors of Madoff's office.
CASEY: If the SEC is going to simply come in after the fact and clean up the bodies and the blood, and not prevent the hit, it doesn't serve any purpose.
JOHNS (on camera): It's not the first time the SEC has gotten slammed for oversight in the last few years. But now some critics are saying, the case of Bernie Madoff just might turn the place inside out.
Joe Johns, CNN, Washington.
(END VIDEOTAPE)
(WEATHER REPORT)
LEMON: All right. Is our run of cheaper gas about to come to an end? OPEC is cutting production. How will the markets react?
(COMMERCIAL BREAK)
LEMON: President Bush is at the U.S. Army War College in Carlisle, Pennsylvania, today talking up his record on terrorism in a speech to the upcoming class of graduates.
Live now to the White House and our Elaine Quijano.
Elaine, this is the last days of the Bush administration. He's got to do what he can to sort of shape his legacy and his message.
What can we expect to hear from him today?
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: That's exactly right, Don.
Well, President Bush, you can expect him to defend, essentially, his policies in trying to keep America safe. As you know, President Bush has been sharply criticized for his policies in the war on terror, including things like harsh interrogation techniques and the use of the U.S. detention facility at Guantanamo Bay, Cuba.
But today in his remarks at the U.S. Army War College in Pennsylvania, the president will push back against his critics. He will underscore how there have not been any attacks on U.S. soil since 9/11. He'll argue how the tools and institutions implemented on his watch have not only helped him, but will help future presidents in fighting the war on terrorism.
And Don, an aide says that he will make the case it is absolutely not an accident that American soil has not been hit since September 11, 2001 -- Don.
LEMON: OK. And you know what? I was reading "The New York Times" this morning. They are reporting that the White House has prepared crisis briefings to help the Obama team on national security issues.
What are you hearing about that today at the White House? QUIJANO: Well, that's right. Officials here say this is really just one part of the transition. And it's essentially -- what this is, it's designed to give the incoming administration information that they can use as kind of a baseline, so that if there is a crisis that might pop up on the foreign policy front, some of these hot spots, that the incoming team will know exactly what the current situation is.
Now, this aide describes it as a "menu of contingencies and possible options," not something that is meant to dictate policy, but really, Don, what we are seeing here is a reflection of the harsh reality. This is the first presidential transition post-9/11. They want to make sure things go absolutely seamlessly -- Don.
LEMON: Yes, that would be important to the security of the country.
Thank you very much for that, Elaine.
More protests today across Iraq in support of the journalist who threw his shoes at President Bush last weekend. Now, he's obtained hero status to thousands who have taken to the streets. The journalist met with an investigative judge in his jail cell today, his brother has been telling the media.
A source tells us -- there's that video. Man, unbelievable, no matter how many times you see it. A source tells us he'll likely be charged with assaulting a foreign head of state. Not exactly sure what the punishment will be for that.
A journalist getting some support here in the U.S. A women's peace group, Code Pink, remember them? They're bringing shoes to the White House today, calling for the journalist's release and calling attention to suffering Iraqis.
All right. Well, we know that oil prices have tumbled 70 percent since the summer. Now OPEC is scrambling to contain the downward spiral with its biggest production cut ever.
CNNMoney.com's Poppy Harlow joins us now with our "Energy Fix."
The question is, will it work and how will it affect consumers, Poppy?
POPPY HARLOW, CNNMONEY.COM: Well, so far it's not working, Don. Oil is down about two more bucks today. And with oil at these levels, under $45 a barrel, OPEC -- those countries are losing about $3 billion a day to stem the bleeding.
It announced that it's cutting 2.2 million barrels a day from its current production levels. That's the largest on record. The largest cut on record.
Is it going make a difference? Let's bring in right now Joe Marshall. He's an oil trader. He makes his living betting on the price of oil. He joins us live from NYMEX.
Joe, thank you for being here. I appreciate it. JOE MARSHALL, ENERGY TRADER: : You're welcome.
HARLOW: Talk to us -- despite this announcement, oil is down about 2 bucks today. It's had no impact, just like October's cut did.
What can boost oil prices at this point?
MARSHALL: You know, right now this market is just trending lower sharply. Sustained action below $48 really just -- you're a seller of the rallies. In other words, if we test that level again -- we did test $50 earlier this week, so sustained action below that level is just going to keep prices lower.
It was a huge cut, as you mentioned. But we also had a build in the inventory numbers today also.
HARLOW: All right. Joe, let's bring this home for the average American consumer. They hear oil prices falling. They're happy. It costs less to fill their tank, costs less to heat their home.
What's the broader economic impact? Because there is a big concern here, isn't there?
MARSHALL: Well, the broader economic impact, I think what you're going to see, if prices continue to stay below $50, you'll see demand come back. I mean, it is the one silver lining that we do have here in the economy, is energy prices have come off so much. So that's a few extra dollars in everybody's pocket.
That being said, if prices do stay here, I think you're going to see the demand come back going forward in 2009. And what that should do is kind of build a base in the low 40s and high 30s. And we may start to creep back higher.
HARLOW: OK. Well, you know, you trade oil for a living. Where is the stabilization here? Where do we see oil price a year down the road?
MARSHALL: My opinion is that they'll be higher than where we are now. I see oil prices back above $60 in the first quarter of next year. And it wouldn't surprise me if you tested $75. And it seems like it's a long way off right now, but as you mentioned, we've come off from $140 a barrel just in July.
HARLOW: Yes, we certainly have. What an interesting six months it has been.
Joe, thank you so much.
And I'll throw it back to you, Don.
But it's interesting, because OPEC's president has said they want to see oil between $70 or $80. And that means higher gas prices for the average American. But today, right now, oil just over $41 a barrel -- Don.
LEMON: Well, you know the consumer wants it to go lower, but...
HARLOW: Yes.
LEMON: All right. Thank you, Poppy Harlow, very much for that.
They say they were tortured and terrorized, some of their friends killed. Decades later, authorities are taking a second look.
(COMMERCIAL BREAK)
LEMON: All right. You know what they are, big-time stars hoping to draw attention to atrocities far from home.
Actor Ben Affleck and Mick Jagger have just launched their short film called "Gimme Shelter." That film is to shed light on hundreds of thousands of families in the Congo driven from their homes by a decade of war.
I want you to check this out real quick.
And that is only just a short clip of "Gimme Shelter."
Bring him up, everyone. Ben Affleck -- there he is -- joins us now, big-time actor and director as well.
Ben, you have been to Africa and you've seen the Congo, what is it, four times since 2007?
BEN AFFLECK, ACTOR: Uh-huh.
LEMON: Tell us, how did this come about? And then we want to hear some of the personal stories that you can share so that people here can understand just exactly what's going on. But how did this short film come about?
AFFLECK: Sure. Briefly, I was doing a lot of work, sort of, as you say, going back and forth from the Congo, and writing about it and doing some stuff on television. And UNHRD wanted to do a film highlighting their work, refugees. And they had this -- they wanted to do this campaign, they had the Rolling Stones' music, and so they sort of knew about what I was doing and they contacted me.
And, you know, I was really honored, obviously, because of what they do, and the Rolling Stones. And I couldn't believe they wanted to hire me. I was thrilled.
And so I went and went back, and we filmed this thing in eastern Congo. And you know, I did my best, and I hope they were happy with it. It was an amazing experience.
You know, as you see some of these photos of these camps, you know, we went places where -- camps that were a kilometer or two from the front lines of this war. You know, we would go film in these camps and go home at night. And several times a woman was shot and killed right after we left, and the next night, two children were shot and killed. Women were raped regularly. Oftentimes, soldiers in the camps would be, you know, drunk and having AK-47s. And it was -- you know, we would be stopped at these checkpoints by police. And it was -- you know, who were just -- it was really very scary. And if you can imagine it was scary for us, what it's like to live in this place and be a refugee and have not enough food and nowhere to go and be subject to rapes, it's terrifying for these people.
LEMON: Yes. And to live there without the protection, because usually, especially when westerners come in, as I've been there, you have security.
AFFLECK: Yes. I'm safe, yes.
LEMON: And people are usually on their best behavior, right.
AFFLECK: Exactly.
LEMON: And so for you to witness all of this while there's security there, while people are watching, imagine what happens when you're not there.
I want to talk to you about this. It used to be Mia Farrow, Ben, was the first sort of ambassador for -- we shall call it foreign policy, or for helping things overseas. And then Angelina Jolie, and then I spoke to Matt Damon a couple of weeks ago who went to Haiti.
Why is this important for celebrities now to become involved in these overseas missions?
AFFLECK: You know, I think it's just a product of people becoming more aware of the world around them. Obviously, celebrities have a long history of giving back and doing philanthropic work. And, you know, historically it's kind of been, you know, maybe AIDS domestically, or cancer research. And now some people choose to do stuff internationally just because they've been exposed to it.
LEMON: Yes. And you said that it's perfect thor that.
And also, you are calling on the new administration to do some things as it concerns the atrocities in Congo. What are you asking?
AFFLECK: Well, you know, one of the things about this that I think a lot of these problems, not all, but some of this stuff can be solved through diplomacy. We have got a financial crisis, and one of the things that I think is good about this is it doesn't need to be solved through a huge amount of money.
You know, diplomacy is, in effect -- you know, it's free. We don't have to put more money into it.
We can -- Susan Rice, who's going to be the ambassador to the U.N., can push to maintain our commitment to MONUC and support them. And MONUC is the U.N. Mission to Congo. They're basically supporting the state in the east, and they're going to be the only ones who can reform the security sector, which is the army in the east which desperately needs reform. The army right now is responsible for 40 percent of the rapes in eastern Congo.
I mean, can you imagine your own army raping 40 percent -- you're committing 40 percent of the rapes? And Secretary of State designate Hillary Clinton, I'm hoping if you create enough public awareness to apply some encouragement to the State Department to say -- you know, to push Conchasa (ph) and President Kabila to implement some of the things they agreed to in terms of moving towards the peace process, separating themselves from some of these militias, and committing to accomplishing some of the things that they committed to, I think with diplomacy, we can make real steps toward peace.
The United States can't do everything. We can only do a certain number of things, but we can do a lot with the support of a committed electorate.
LEMON: Yes, with the help of a number of people and a number of nations as well.
Hey, Ben, I want to ask you real quick -- I'm not sure from my research -- did Mick Jagger travel with you or did you just do...
AFFLECK: He did not, but he was generous enough to commit this music. And I'm really, really grateful.
And we also have a guy, Paulo Nutini (ph), who did a slower version of the song. That's also on the Web site. We've got a bunch of different, you know, versions of the film, shorter and longer.
LEMON: So how do people help? You're talking about this film. Is it something they can buy? Is it a CD? Tell us about it. How do we get money for you guys?
AFFLECK: UNHRD.org. It's just a -- their slogan is "It's just a click away."
Go on there, check it out. You can see all these different versions, you can give them money.
The UNHRD is doing great work, as you can see if you watch the film, all the stuff they're doing in terms of providing food, shelter, clean water, moving people to areas that are safe. It's a good organization working in very, very difficult circumstances.
Not a lot of NGOs are down there because of violence and adverse circumstances. They are the real things.
LEMON: NGOs: non-governmental organizations.
AFFLECK: Non-governmental organizations.
LEMON: You're talking the lingo when you travel overseas.
AFFLECK: Sorry. I apologize. I know. It's obnoxious. It really is.
LEMON: Oh, no. But it's good. Hey, Ben, I'm glad that you guys, you and Matt and all of you, are really putting your voice behind things that help not just film, not just the glitz in Hollywood. So congratulations to you guys, ,and we hope that this is very successful for you.
AFFLECK: Thanks. Thanks very much.
LEMON: All right.
We turn now to Florida, where they are opening the books on a decade's long mystery and reopening some very painful old wounds.
Investigators want to know who is buried in more than 30 unmarked graves outside a reform school?
Here's CNN's Ed Lavandera from Marianna.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: This shouldn't be. This shouldn't be.
ED LAVANDERA, CNN CORRESPONDENT (voice-over): The site of 31 simple crosses brings back decades of pain for Brian Middleton (ph).
UNIDENTIFIED MALE: For these people to be here, these young children to be buried in unmarked graves, not knowing who they are, this is a travesty against mankind.
LAVANDERA: Nearly 50 years ago, Middleton (ph) and thousands of young boys came through the Florida reform school for boys that once stood on these grounds. For years, many of the former students told stories of excruciating abuse sufferrd at the hands of the school's administrators. They say those beatings took place in this building known as the "White House."
ROBERT STRALEY, FMR. STUDENT: Just looking at it gives you the creeps, you know, because if you were going down there, were you going to get the beating of your life.
LAVANDERA: A growing legion of former students now in their 60s say for some boys, a violent night in the "White House" ended in these unmarked graves.
Many of the school's administrators have died, but a few are still alive like Troy Tidwell (ph), who is now in his late 80s. We found him living in a small house in the Florida panhandle. He wouldn't talk to us, but he recently told "The Miami Herald" that the boys were "spanked" but denied they were ever injured.
Florida's governor has called for an investigation into the alleged abuse and to determine who, if anyone, is buried beneath these white crosses.
GOV. CHARLIE CRIST (R), FLORIDA: I think it's important. Justice always cries out for a conclusion. LAVANDERA: The push for an investigation was led by a group of men known as the White House Boys. During the course of a three-hour interview, they detailed stories of young boys who simply vanished from the school. These men believe more than 31 of them were killed.
Dick Colon remembers another boy who died after being stuffed in a spinning drier. Not helping the boy has haunted Colon since that night in the laundry.
DICK COLON, FORMER STUDENT: And then I say to myself, if do you it, they're going to put you in there. You're going to be next. And I walked away.
I don't know how often in a week I think about that. What a chicken (EXPLETIVE DELETED) I was.
LAVANDERA: For nearly 50 years, few have believed their stories, but they say that's finally starting to change.
The investigation of abuse at the Florida Reform School for Boys is just beginning. And investigators say it could take months, if not years to figure out who's buried in these 31 unmarked graves.
Ed Lavandera, CNN, Mariana, Florida.
(END VIDEOTAPE)
DON LEMON, CNN ANCHOR: President-elect Barack Obama reveals more of his team.
(COMMERCIAL BREAK)
LEMON: All right. Let's take a look now at the big board. You can see the Dow is down hovering in around 40. Goes between 30 and 40. And also the Nasdaq hovering around 4 or 5 today. Down as well. We'll check in with our money folks here on Wall Street and get back to you. As soon as we can, we'll have an update for you.
Detroit's automakers aren't the only ones feeling the recessional squeeze. For the third time this year, Honda is cutting its profits forecast. This time by a whopping, get this, 69 percent. Honda's CEO says things are getting worse by the day and he sees no prospects of recovery. Sales in the U.S. -- Honda, in the U.S., Honda's biggest market, were off 32 percent in November.
You know what, the Obama cabinet is getting pretty crowded. The president-elect announced two more names last hour. National political correspondent Jessica Yellin joins us now from Chicago with the very latest on that.
We talked last hour. Just as we expected, the two people he announced. We were right on.
JESSICA YELLIN, CNN CORRESPONDENT: We had those names in advance. They are Ken Salazar, senator from Colorado who is going to run the Department of the Interior, and former Iowa Governor Tom Vilsack, to run the Department of Agriculture.
Now both men Obama introduced as part of his effort to focus his agenda on creating a new, greener future for the U.S. Focusing on better land management and development of alternative fuels. Let's listen to what the president-elect had to say.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA, (D) PRESIDENT-ELECT: It is time for a new kind of leadership in Washington that's committed to using our lands in a responsible way to benefit all of our families. That means ensuring that even as we are promoting development, where it makes sense, we are also fulfilling our obligation to protect our natural resources.
(END VIDEO CLIP)
YELLIN: Now he introduced Ken Salazar, the senator from Colorado, as longtime resident and longtime farmer there. In fact, his family has lived in Colorado for 400 years, before the state was even part of the union. And he was once a water and environmental lawyer. So he really is familiar with land use issues and is considered something of a moderate. He both supports some types of offshore drilling, but also preservation and land management. A guy who can build compromises and consensus.
The other fellow he introduced, Tom Vilsack, was a former rival of his, the former governor of Iowa, once ran in a Democratic primary against Barack Obama. And Vilsack has been a champion of new biofuels and especially ethanol. And he made it clear that he'll focus heavily on developing alternative fuels and funneling federal dollars as much as he can that way.
Don.
LEMON: And, Jessica, just as you said, he was asked one question by CBS about transparency and the scandal that's going on in Illinois and he said, can't do it. When I can, I will.
YELLIN: And that's what we're hearing from transition officials consistently. They say they look forward to releasing the information, but now the not the time. So we're going to have to look for that next week.
LEMON: All right. Jessica Yellin, we appreciate it,. Stay warm in Chicago, will you?
YELLIN: Trying. It's not easy.
LEMON: It's good that you're inside. Glad you're inside today. OK, Jessica Yellin in Chicago, thanks.
On Friday, you know, the government will auction off land near some of Utah's national parks. Likely to gas and oil companies. They'll do it. Well, the man on a red-hot mission to stop the fire sale right now is actor Robert Redford. He's in Washington today speaking on behalf of the National Resources Defense Council Action Fund. Now his visit comes after a letter he sent last week pleading for support and calling the land, that sale, criminal.
Hundreds of newly discovered species no one had ever seen until very recently. We'll get a close-up look at some of the more remarkable ones.
(COMMERCIAL BREAK)
LEMON: That's some good music there. I'm going to watch just for the music.
All right. Well, a veterans group is suing the government. It claims the Army has denied full benefits to thousands of troops who came back from Iraq and Afghanistan with Post Traumatic Stress Disorder.
(BEGIN VIDEO CLIP)
JUAN PEREZ, PTSD SUFFERER: I served my country honorably in the military. I've never had any reprimands during my time as a soldier. I received a good conduct medal for my service. I was top gun from my squadron and even shot the fastest times. I was a good soldier. I was an honorable -- I had an honorable discharge. But then when I was injured, my expectation was that the military would be there for me and my country would be there for me. Instead, the way I was treated felt more like a slap to the face.
(END VIDEO CLIP)
LEMON: Well, the group claims the Army failed to assign the proper disability ratings to veterans with PTSD, Post Traumatic Stress Disorder, thus cutting their disability payments and medical care. CNN has not yet received a response from the military.
We should be hearing more soon about the nation's first face transplant. We just got word of the procedure yesterday. It involved a woman who had been badly disfigured. Surgeons at Cleveland Clinic replaced 80 percent of her face, all but her forehead and her chin, from the face of a woman who had died. That's what they replaced it with. It was the fourth such transplant in the world. A news conference is scheduled at the top of the hour and CNN will have coverage of that for you.
A treasure-trove of life. Scientists have discovered more than 1,000 new species, including a green viper that was spotted slithering along the rafters of a restaurant. OK. Josh Levs, explain that.
If it's going to about viper slithering, I'd rather someone know what it is and not know and -- oh, whatever.
JOSH LEVS, CNN CORRESPONDENT: Well, also, it wasn't slithering on a plate. At least it was up on the rafters, right?
LEMON: I don't want it there at all. How about that, Josh?
LEVS: Well, but I'm about to show you why this thing can actually help save some humans. It's pretty incredible.
LEMON: OK.
LEVS: Have you seen these pictures. I mean, they're amazing.
LEMON: I've seen some of them. I think it's great that it's going to help but no one wants it in a restaurant.
LEVS: Take a look at this. So I'm just going to -- let's click on this for just a second. The World Wildlife Fund has announced that over the last 10 years they have found hundreds, actually more than 1,000 total, different species in the Mekong Delta. And joining us right now to talk about think is the woman who runs that program. Let me make sure I'm pronouncing your name right, Dekila Chungyalpa.
Are you with us?
DEKILA CHUNGYALPA: Yes, I am. That's right.
LEVS: Dekila, thank you so much.
I want to start off with this thing because everyone is talking about it. Look at this massive green viper. What are we looking at here? What's the deal?
CHUNGYALPA: We're looking at a Gumprecht's Green Pit Viper. It's a female. And the way you know that is because it's got yellow eyes. And if it was a male, it would have crimson eyes.
LEVS: And this thing can kill you, right?
CHUNGYALPA: Yes, it's definitely venomous. It's about four feet long. A little scary. It's mostly found in trees. So that's where it hangs out. You do not want to find it when you're walking in the forest.
LEVS: Really quickly, though, you told me it has medicinal purposes?
CHUNGYALPA: It does. It's hemotoxic. Most pit vipers are. Which means that the bite is not only venomous, but it has a toxin that prevents blood clotting in the victim.
LEVS: So that can be used to help save people?
CHUNGYALPA: It can. I mean, it's going to kill you, but it will be slow and painless.
LEVS: Al right. Check out this next one, which I think is fascinating. This is bright pink. And this is a millipede that you told me emits cyanide?
CHUNGYALPA: Yes.
LEVS: Well, what's the deal?
CHUNGYALPA: It's tiny. It's the size of a thumb. And we don't think of bright pink as a scary color. But in the natural kingdom, it's actually -- it's basically a walking warning sign telling all predators that you should stay away. So it produces cyanide. It secretes it.
LEVS: Well, I like that you say, in general, if you see a bright pink animal you're not familiar with, that means stay away.
CHUNGYALPA: Yes.
LEVS: Now take a look at this one. See, I like this one because of the 1,000 species that were found, only 15 are mammals. One of them is this rabbit. First of all, is it that scary in person because though eyes remind me of those Orphan Annie comics where they don't have any eyes?
CHUNGYALPA: Oh, no, they're cute!
LEVS: And, also, did it interbreed with a lion? Like what are we seeing here?
CHUNGYALPA: OK. So we're looking at an Annamite Striped Rabbit. There are only two stripped rabbits in the world. And the cool thing about the Annamites is, it's the (ph) misshrouded (ph) mysterous (ph) mountains (ph). The eseperate (ph) Laos in Vietnam and they're mostly everwets (ph). And they're basically an historic refugia (ph). These are sanctuaries of species during climate change variation.
LEVS: You're talking about the region, right? You're talking about this area here.
CHUNGYALPA: Yes.
LEVS: Let me bring this over because we have a Google Earth map. I want to take everyone through this. Well, actually let's start off in the outer space and we're going to like kind of zoom into it right here. You're talking about the Mekong Delta, which is along the Mekong River. You've got Cambodia, Thailand, Laos. And you're telling me -- I think you told me this earlier, in that area they kind of escaped some of the perils of climate change.
CHUNGYALPA: Yes, they did.
LEVS: How?
CHUNGYALPA: If you look at border between Vietnam and Laos, well, look at the river. You're watching it go from the Domin (ph) plateau, all the way down to the delta, right?
LEVS: Sure.
CHUNGYALPA: And so on the right side, right as the river goes down, that's basically these mountains. And because they are peaks, what happened is during ice ages, they've actually ended up -- all the species have ended up going north to the mountains. And so they've become isolated pockets of evolution.
LEVS: That's incredible.
CHUNGYALPA: So there are species here that don't exist anywhere else. LEVS: Isolated pockets of evolution. In fact, that's why when you take a look at this, I'm just going to scroll through some of these, these species include different kinds of plants, lizards, frogs, all sorts of animals you're pretty much never going to see anywhere and have never seen anywhere else.
CHUNGYALPA: Yes.
LEVS: But to be fair, these are known to the indigenous populations. It's just to the western world that they're brand new, right?
CHUNGYALPA: Yes, that's right. In fact, we learn a lot from local communities.
LEVS: Yes, well you must.
All right, listen, before we go, I want to ask you about this because we were having a debate. I say it's cute, scary. Some people think it's just scary. If I saw a large one, I'd probably faint. But what is this? What are we3 seeing?
CHUNGYALPA: It's not very large. So it becomes cute. It's basically a wooly bat. It's a vespa (ph) bat. And it's got funnel shaped ears which I think makes it cute. It's found in Laos and in Cambodia. And we found it in 2005 in Cambodia where (INAUDIBLE) work.
LEVS: Unbelievable.
CHUNGYALPA: And it's quite (INAUDIBLE).
LEVS: All right. Well, look, we're going to end with this one because here's what I don't get. This is also very adorable. This is a certain kind of rat you can tell us about. But you, as I understand, you say that these were thoughts to be extinct 11 million years ago? Which means two questions. Why did people think that they even existed 11 million years ago and how do you know that it's the same thing?
CHUNGYALPA: OK. So this is the Laotian rock rat. And the first thing is, this is actually related more closely to a squirrel than a rat. And it was found in an open food market.
LEVS: Wow. OK.
CHUNGYALPA: We actually thought it was a new species until we realized that when you went back to fossil records, it was a species that existed 11 million years ago.
LEVS: Absolutely incredible.
Listen, thank you so much for your time. I'm going to tell everybody, there's more information on cnn.com. You can check out all of these pictures, even if you don't have a cool screen to touch like this.
And, Don, there you go.
LEMON: Yes.
LEVS: Now you can . . .
LEMON: I think you're making this stuff up. That one was a Tasmanian devil. The other one was a chipmunk and then . . .
LEVS: Well, I appreciate that you think I'm clever enough to come up with something like that. Well, she did a good job playing a scientist, didn't she?
LEMON: Yes, she did. What did you say, you said you were going to faint? What are you going to get the vapors on the veranda or something?
LEVS: I'm just saying, if that thing were actually a giant monster. I'm the one who says it's cute! Other people are arguing it's just scary.
LEMON: I've got this vapor (ph). Oh, my gosh! What is that animal in my yard?
LEVS: I don't get that reference? What does that mean? What does the vapors mean?
All right. Someone older than me is going to have to fill me in on this one.
LEMON: Josh, thank you very much.
LEVS: Guys, what are the vapors?
LEMON: Oh, you know what it is. You know what it is. Thank you. When you pass out. Thank you very much.
All right. Well, you know what, well banks have found a new way to track down foreclosure clients. And you might not want to log on after hearing this one.
(COMMERCIAL BREAK)
LEMON: It's really getting harder to run and really hiding. You can run but you can't hide these days, especially if you're on one of those social networking site. I'm going to let Veronica De La Cruz tells us which one because, Veronica, I'm hearing that an Australian couple might lose their home because of something that happened on which one of those social networking sites?
VERONICA DE LA CRUZ, CNN CORRESPONDENT: We're talking about FaceBook, Don.
LEMON: Wow. A lot of people on FaceBook, too.
DE LA CRUZ: A lot of people on FaceBook. And, you're right, they're facing a possible eviction. It's a very interesting story out of Australia. Like you were just saying, they're receiving notice via FaceBook. They've got seven days, Don, to respond or they could lose their home. A judge has ruled in favor of a law firm representing a mortgage lender who says they've tried every traditional method of contacting this couple. They've made several phone calls. They've written letters. They've even paid a dozen visits to the couple's home.
So after several failed attempts, they decided to try a different method. They searched the web and discovered the two had very public profiles posted to FaceBook. Carmel Corvo (ph) and Gordon Poiser (ph) owe their lender more than $100,000. And now a judge has ruled that the law firm has done its due diligence and has properly informed the two, even if it was done via FaceBook. The Law Institute of Australia says electronic communication is increasingly replacing more traditional means of serving a summons. Take a listen.
(BEGIN VIDEO CLIP)
TONY BURKE, LAW INSTITUTE OF VICTORIA: Well, it's a very interesting development. It shows that in Australia, our courts are flexible and adaptable and willing to embrace new technologies. But I guess there are messages for those who choose to have a presence on FaceBook -- you are liable to be found.
(END VIDEO CLIP)
DE LA CRUZ: And gauging reaction on the web to this story, we found this on huffingtonpost.com. Fabibi says, "I cannot see this methods of notification becoming legal in the United States. The connection between a real person and a web page about them is much to tenuous."
And then from FaceBook, Don, Eric Chiu sent this to us. And he says, "FaceBook's grown into a pretty vital part of my social routine because everyone I know is on here. So anything from breakups to school changes gets told to everyone. With information like that already being made public to my social circle, it's not too much of a stretch to think information like this could be next."
And then I just got this one in via Twitter, Don. It says L.L. Jones (ph) says, "I receive wedding invitations on FaceBook. But this is just to crazy. This is just to crazy."
So we're asking you out there, what are your thoughts? Could this happen here in the U.S.? What do you think of the judge's ruling? Go ahead and contact us via FaceBook. If you do have a profile, go ahead and search Veronica De La Cruz in the CNN NEWSROOM with Tony Harris. You can also reach out to Don Lemon. He's got a FaceBook page as well. You can find me on Twitter at Veronicadlcruz. And I know that I follow you on Twitter, right, Don?
LEMON: Oh, yes, Twitter and FaceBook.
DE LA CRUZ: Donlemoncnn.
LEMON: We talked on FaceBook, what, like a couple weeks ago, right?
DE LA CRUZ: Yes, we have. But, I mean, what does it say?
LEMON: I don't know.
DE LA CRUZ: Should we keep our profiles hidden? But we can't.
LEMON: No. mine is Donlemoncnn. (INAUDIBLE). It's easy. It's easy.
DE LA CRUZ: Everyone.
LEMON: Hey, you know, it is a legal precedent, but it's in another country. It would be interesting to find out if that precedent may hold some sort of -- something in this country for legal people. They may be looking at it.
DE LA CRUZ: Yes, it's going to be very interesting. It is anti-social networking.
LEMON: All right. Thank you very much for that, Veronica De La Cruz.
All right. Americans spent over $8 billion on Christmas trees last season. And hard times or not, the National Christmas Tree Association says sales this year may beat the ones in 2007. At one farm, the salesmen are as green at the trees. Lloyd Herper (ph) with Minneapolis affiliate KARE takes a look.
(BEGIN VIDEOTAPE)
LLOYD HERPER, CNN CORRESPONDENT, (voice over): When meeting up with costume tree salesman Lorenzo Garcia (ph), the analogy is almost too easy.
UNIDENTIFIED MALE: I'm stealing the tree.
HERPER: Just a month ago, some feared the economy would steal Christmas from Minnesota's tree sellers.
BRYAN BARTS (ph), MANAGER, RUM RIVER TREE FARM: A lot of customers, when they placed their original wholesale orders, you know, they seem to be a little bit more conservative.
HERPER: Bryan Barts is a manager at Rum River Tree Farm, the Anoka (ph) County grower that operates 22 Christmas tree lots in the twin cities and supplies trees for more than 100 garden centers, Boy Scout troops and church lots.
UNIDENTIFIED MALE: They're nice and soft. You can hug them.
HERPER: Turns out the Grinch didn't steal Rum River's Christmas at all.
UNIDENTIFIED MALE: And it's just like hugging a goat.
HERPER: Sales up 30 percent the first weekend after Thanksgiving and steady the rest of the way.
BARTS: It brings the spirit back and makes everybody happy, I guess.
UNIDENTIFIED MALE: Secure her tree, so she don't lose it. HERPER: A similar sigh of relief statewide according to the Minnesota Christmas Tree Association. Its executive director compares Christmas trees to Thanksgiving turkeys. Some traditions families will not do without. This is actually the first real tree in years for Darwin Long's (ph) family.
DARWIN LONG: But I just decided I'm going to go get a real one this year. I had the day off and stuff. So that's why.
UNIDENTIFIED MALE: Look at this, huh.
HERPER: If only automakers and electronics retailers could be so merry.
UNIDENTIFIED MALE: Jingle bell, jingle bell, jingle bell rock.
(END VIDEOTAPE)
LEMON: That was a Grinchy looking tree.
All right. A burglar shows he has a conscience and it's all caught on videotape.
(COMMERCIAL BREAK)
LEMON: A thief breaks into a home and breaks a couple's heart. Among the stolen valuables, a travel journal their late daughter wrote on her final trip. Now those parents' broken hearts have been mended. Yes, the thief returned the keepsake and here's ITN reporter Damon Green in Wilshire, England.
(BEGIN VIDEOTAPE)
DAMON GREEN, CNN CORRESPONDENT, (voice over): Security cameras designed to catch thieves in the act of stealing. This one records the moment when a burglar wracked with remorse brings back what he'd taken and returns it to the couple he'd robbed. The journals and photos of Lisa Wilson (ph). The loving family's only daughter and the only record of her precious life, stolen while they were on holiday.
CLIVE WILSON, FATHER: I think just shock. I mean it was just absolutely wicked. I mean I felt sick, you know, because I also thought there were videos in there that were gone, which, fortunately, they were somewhere else. But it was just a terrible, terrible feeling. A huge loss.
GREEN: Lisa was traveling in Australia after finishes university. A bright, happy girl who made friends everywhere she went. She kept a diary of her travels. When she died tragically in a road accident in the outback, this journal was all that was left. So precious it was with the cash and jewelry taken from the family's safe. Now it seems thieves have realized the damage that theft has done and tried to make amends.
WILSON: It was just amazing. I mean, just overcome with joy, really. I've said that it would be the best Christmas present that we could ever have, you know, to get back. And to be fair, you know, the thief didn't have to bring it back.
GREEN: Police say they're still looking for this man as they try to trace the rest of his whole (ph). The search is for a criminal with a conscience.
Clive and Trisha (ph) never suspected they'd see Lisa's journal again. They never suspected they'd see it returned on CC-TV. The jewelry may be gone forever, but what's most precious to them is finally come home.
Damon Green, news at 10:00 in Wilshire.
(END VIDEOTAPE)
LEMON: Thanks to Damon.
CNN NEWSROOM continues right now with Kyra Phillips.
KYRA PHILLIPS: Plastic surgery it's not. This is drastic surgery. The cutting edge of transplant operations. A whole new face. We'll hear live from the surgeon this hour.
